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please help me out! If the risk free rate of return is 3.10% and the market risk premium is 7.60%, which of the following stocks
please help me out!
If the risk free rate of return is 3.10% and the market risk premium is 7.60%, which of the following stocks has the right rate of return according to the Capital Asset Pricing Model: Stock Reliance Industries Unilever International Merck Incorporated Pfizer Incorporated Johnson and Johnson Beta 0.79 1.47 1.28 1.46 0.95 Return (r E) 8.47% 14.50% 11.22% 11.68% 10.32% Pfizer Incorporated Merck Incorporated Reliance Industries Unilever International Johnson and Johnson Next Previous Which of the following decisions, relates to management of working capital: Deciding how much inventory to keep on hand Deciding whether to build an apartment building or not Determining whether to issue debt or equity to pay for the firm's expansion Negotiating whether to lease or buy a new store location Determining whether to replace a fleet of vehicles or not Next Previous I point Use all of the information in the previous question and table. Based on the information in the complete table, the optimal capital structure for twitter is: 45% financed with equity and 55% financed with debt 55% financed with equity and 45% financed with debt 40% financed with equity and 60% financed with debt 60% financed with equity and 40% financed with debt 70% financed with equity and 30% financed with debt M Previous 30 1 point The common stock of TATA Motors Inc. has a return (equity cost of capital) of 13.92 percent. The average return on the stock market for the past several years has been 12 percent and the risk-free rate of return is currently 2.4 percent. The beta of TATA Motors is: 0.60 1.08 4.80 0.83 1.20 NextStep by Step Solution
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